Economic growth would falter and the labor market could lose millions of jobs, the White House told ... [+] state and local officials on Friday. If the U.S. defaults, federally funded programs could be halted, the White House said, pointing out disaster relief efforts, Medicaid and infrastructure funding would all likely be affected. Officials also warned of increased stock market volatility if the debt limit debate drags on, pointing out the S&P 500 fell by 17% in months during a prior debt limit standoff in 2011. According to the Treasury, Congress has either raised, extended or revised the definition of the debt limit 78 times since 1960, and it's never failed to act on the debt limit when necessary. Crucial Quote“The U.S. economy has just begun to recover from the pandemic and a manufactured debt ceiling crisis would threaten the gains we’ve made and the future recovery,” the White House said in its Friday note.

Source: Forbes September 17, 2021 14:48 UTC